JAGESH KUMAR KHAITAN vs. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2 CHANDIGARH AND OTHERS

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CWP/14918/2025HC Punjab & HaryanaPHHC01082983202507 July 2025Author: MR. JUSTICE ANUPINDER SINGH GREWAL,MR. JUSTICE DEEPAK MANCHANDA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the petition in the same terms as the judgments in Jatinder Singh Bhangu Vs. Union of India and others and Jasjit Singh Vs. Union of India and others. In those cited cases, similar writ petitions challenging notices issued under Section 148 of the Income Tax Act, 1961, were allowed. The respondents were granted liberty to follow the procedure laid down under the Act, 1961, and proceed accordingly if they were so advised. The reasoning in the cited cases likely revolved around the procedural impropriety of the jurisdictional officer issuing the notice when the faceless assessment scheme, as per the notification, designated the NFAC for such actions. The operative direction is to dispose of the petition in line with the precedent, implying the original notice is vitiated but allowing the revenue to re-initiate proceedings correctly if they choose.

What were the facts?

The petitioner, Jagesh Kumar Khaitan, challenged a notice dated 10.01.2025 issued by the Assistant Commissioner of Income Tax, Central Circle 2, Chandigarh, under Section 148 of the Income Tax Act, 1961, along with consequential assessment proceedings for Assessment Year 2021-2022. The petitioner argued that the notice was erroneously issued by the Jurisdictional Assessing Officer, who lacked the authority to do so. This was based on a notification dated 28/29.03.2022, which mandates faceless assessment proceedings and vests exclusive power to issue Section 148 notices with the National Faceless Assessment Centre (NFAC). The petitioner cited previous decisions of the High Court of Punjab and Haryana in similar cases.

What were the issues?

1. Whether the notice dated 10.01.2025 issued under Section 148 of the Income Tax Act, 1961, is invalid because it was issued by the Jurisdictional Assessing Officer instead of the National Faceless Assessment Centre (NFAC), in light of the notification dated 28/29.03.2022 concerning faceless assessment proceedings? The assessee contended that the notice was erroneously issued by the Jurisdictional Assessing Officer, who lacked jurisdiction. They argued that the notification dated 28/29.03.2022 mandates faceless assessment and grants exclusive power to the NFAC to issue Section 148 notices. The assessee relied on decisions in CWP No.15745-2024 (Jatinder Singh Bhangu Vs. Union of India and others) and CWP No.21509-2023 (Jasjit Singh Vs. Union of India and others). The revenue did not record any specific arguments in the judgment.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

CWP-14918-2025 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 109 CWP-14918-2025 Date of decision : 07.07.2025 Jagesh Kumar Khaitan

... Petitioner Versus Assistant Commissioner of Income Tax Central Circle 2, Chandigarh and others

... Respondents CORAM : HON'BLE MR. JUSTICE ANUPINDER SINGH GREWAL HON'BLE MR. JUSTICE DEEPAK MANCHANDA Present:- Mr. Kartik Bansal, Advocate and Mr. Bhuvan Khurana, Advocate for the petitioner. Mr. Yogesh Putney, Senior Standing Counsel with Mr. Vidul Kapoor, Junior Standing Counsel for the respondent/Income Tax Department. *** Anupinder Singh Grewal, J. (Oral) The petitioner has challenged the notice dated 10.01.2025 (Annexure P-1) issued by respondent No.1 under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act, 1961’) and all consequential assessment proceedings for Assessment Year 2021-2022. 2. Learned counsel for the petitioner submits that the impugned notice under Section 148 of the Act, 1961 has erroneously been issued by the Juri ictional Assessing Officer although he has no juri iction to issue the same in view of the Notification dated 28/29.03.2022 which provides for faceless assessment proceedings and National Faceless Assessment Centre SONIA GUGNANI 2025.07.08 09.02 I attest to the accuracy and integrity of this document Chandigarh

CWP-14918-2025 -2- (NFAC) has exclusive powers to issue notice under Section 148 of the Act, 1961. He further submits that the Coordinate Bench of this Court in CWP No.15745-2024 -Jatinder Singh Bhangu Vs. Union of India and others and connected matter, decided on 19.07.2024 as well as CWP No.21509-2023- Whether speaking/reasoned : Yes/No Whether reportable : Yes/No SONIA GUGNANI 2025.07.08 09.02 I attest to the accuracy and integrity of this document Chandigarh

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